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Your niece just started her college career with a major in economics. She is curious as to the interrelationship between the success of an economy and the financial markets, concepts, and financial institutions. Accordingly, she has developed a list of questions addressing these issues and has asked that you explain the ideas.
What are the financial markets and what purposes do they serve? What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts:
Why are consumers considered to be risk averse? What methods could used to deal with risk? It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy? What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics? If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?
Get price level stability under these conditions the government should:
Illustrate what are those key objectives and what are the key tools does the Fed use to achieve those objectives.
Illustrate what it says regarding the current state of the economy and the latest reading and trend.
In an article about the financial problems of USA Today, Newsweek, reported that the paper was losing about $20 million a year.
Assume that a company maximizes its total profits and has a marginal cost. Find the price at which the firm sells the product.
You are a recent University graduate hired to make a Human Resource section and serve as the HR Director for the SMC Company, which manufactures ergonomic office equipment.
Illustrate what is the biggest economic concern for Argentina, like unemployment or population.
Karen has kept her entire life savings, $50,000, in a floor safe underneath her bed. This morning, she make a decision to deposit her savings in a checking account at Cambridge Bank.
Estimate the regression coefficients using ordinary least squares and interpret them and predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle
Suppose you are reviewing an isocost graph. The axis on the graph shows capital units on the vertical axis, and labor units on the horizontal axis.
A paper detailing explain why the US dollar might be replaced as the nation's reserve currency by the Euro or the IMF's Special Drawing Rights.
Create a scatterplot with age on the horizontal axis and the log of price on the vertical axis. Do older wines tend to sell for more than younger wines? Does an older wine always sell for more than a younger wine?
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